Entrepreneurs Adoption of Information System Innovation : The Impact of Individual Perception and Exogenous Factors on Entrepreneurs’ Behavior

Purpose - This paper explores technology adoption and use behavior of IS innovations by entrepreneurs. To measure the perception of IS innovations by entrepreneurs we review UTAUT and the Entrepreneurial Potential Model (EPM), empirically compare the two models, develop a new model that integrates elements from the two models, and then empirically validate the new model (TADU) in a technology acceptance context. Design Methodology/Approach - The data used to test the hypothesis is collected from 520 entrepreneurs in Malaysia. The research model was analysed using structural equation modelling. Findings - The results indicate that perceived desirability and perceived feasibility have significant effects on entrepreneurs’ intention to adopt and use innovations. Propensity to use is an important factor that has a significant effect on individual behavior. The precipitating events that happen in the time lag between intention and behavior will disrupt entrepreneurs’ inertia and induce a change in their behavior, encouraging them to seek the best opportunity available. Practical Implications - Understanding the individual, technological and environmental factors that significantly affect IT adoption behavior can support policy makers in providing guidance on the adoption and usage of IT innovations by entrepreneurs. Originality/Value - This study proposes a technology adoption and use model (TADU) with six core determinants of intention and usage - perceived desirability, perceived feasibility, performance expectancy, effort expectancy, social influence and facilitating conditions and two new moderators, precipitating events and the propensity to act